Question
Constant Growth DCF Model Pharmecology is about to pay a dividend of $1.35 per share. It's a mature company, but future EPS and dividends are
Constant Growth DCF Model
Pharmecology is about to pay a dividend of $1.35 per share. It's a mature company, but future EPS and dividends are expected to grow with inflation which is forecasted at 2.75% per year.
A: What is Pharmecology's current stock price? The nominal cost of capital is 9.5%
B: Redo part A using forecasted real dividends and a real discount rate
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International Financial Reporting A Practical Guide
Authors: Alan Melville
6th edition
1292200743, 1292200766, 9781292200767, 978-1292200743
